How to Finance Commercial Solar Panels Using Show Me PACE in Missouri
Updated: Jun 3, 2022
By now you probably know that solar is a solid investment, but you might not know all of the specifics that go into investing in solar. To get all the perks that make upgrading to solar power a no-brainer, you first have to make a plan for payment. Every solar panel system needs permitting, installation, design & parts (solar panels, inverter, electrical panel & meter, and of course the sun). Fortunately there is an exceptional way to finance commercial solar panel systems in Missouri.
Thinking of making clean energy updates to your building? See if Show Me PACE financing will work for you.
How to Finance Your Solar Project Using Show Me PACE Financing
What is Show Me PACE Financing?
Show Me PACE (Property Assessed Clean Energy) offers financing for property owners to pay for energy efficiency and renewable energy upgrades. So, if you own commercial real estate and want to invest in solar panels without putting up cash you can get a fixed-rate loan for up to 20 years with PACE.
PACE financing provides 100% upfront financing for eligible clean energy improvements like commercial solar power installation through private capital. We’re one of just a few authorized contractors for commercial solar & LED lighting/controls projects.
The process for commercial property owners follows the below steps:
Commercial Financing for Solar Power - Steps for Show Me PACE Funding
Submit completed application to Show Me PACE. As the property owner, you’ll work with contractors and your approved lender to apply.
Show Me PACE organization reviews applications.
Lender supplies funds for construction (up to 100% upfront financing).
Approved solar panel project filed with County Recorder, and the contract places assessment on the property.
3rd-party collector bills property owner, with annual assessment bill due Dec. 31st.
Collector remits payment to Show Me PACE lender.
This financing option for property owners looking to improve their bottom line has been crucial for many Missouri businesses who are switching to solar. So far, over $67,000,000 has been financed for Missouri companies looking to harness energy independence from solar! There are some amazing economic impact stats on the Show Me PACE website.
Benefits of PACE Financing
Because PACE financing is repaid as an assessment on the property’s regular tax bill, it generates benefits that aren’t available through conventional forms of funding. Businesses can expect the following benefits when using this financing option for solar:
No out of pocket costs for solar.
Low-rate, long-term funding for renewable energy.
Positive cash flow.
Decreased building maintenance costs.
Aligned landlord, tenant, and real estate seller interests.
This valuable loan program was an important piece to a solar installation we completed for Klance Unlimited in 2021. The commercial solar panel system is on track to save the company $418,469 with energy savings totaling around 3,186,300 kWh's, all powered by renewable energy. Not to mention the immediate savings from upgrading to LED lighting in the same year, with EES.
PACE financing isn’t available everywhere, but it is a great option for many businesses who want to invest in solar power.
See other efficiency programs available for Missouri business owners: https://mosaves.com/